Insurance claims come in all different shapes, sizes, and amounts. In fact, the net premiums written in 2017 totaled $1.2 trillion with property/casualty insurance accounting for 48% of that amount. As the insured, filing a claim is never fun as it indicates that an unfortunate incident has occurred. As the insurer, it creates a mountain of work as you investigate the situation, draw up any necessary documents, use valuable resources, and make coverage decisions.
The ideal situation would be that the claim never existed in the first place, but it’s impossible to prevent EVERY claim. Instead, try to reduce the number claims and the impact of claims you can’t avoid. How? By effective client engagement and creating a strategy to do so.
What is Client Engagement?
To put it simply, client engagement is the reoccurring interactions between an organization and its clients. Organizations will typically sell services or products and – until renewal time or, in this case, a claim – that sales transaction will be the final interaction they have with a customer. Great companies are those who act differently and realize the potential in a repeat customer.
Inherent to having a solid client engagement strategy are increased retention, brand loyalty, and more opportunities to sell. But for insurance companies, there’s also an added bonus of reduction of claims. Reduction can be defined as a shorter timeframe that a claim is open or those opportunities to avoid a claim altogether. Frequent client engagement gives you the opportunity to educate your clients on new regulations and current happenings and with this knowledge, some claims can be avoided.
How to Start Engaging with Clients
There are a variety of ways to engage with your clients. A study conducted by Aberdeen Group claims that the strongest omni-channel client engagement strategies can help organizations retain an average of 89% of their customers.
Omni-channel means employing a variety of channels to engage with your customers. That can be engagement through social media, email in the form of a check in, or some type of support portal. Your clients inhabit a variety of platforms, giving you multiple opportunities for engagement. The customer experience shouldn’t be robotic or overly predictable, which is why engagement matters.
Sending your client an article about the newest cyber security regulations, for example, can save them from a costly audit. These small interactions can make a huge impact. By helping your clients, you’ll become more than just another entity trying to sell a product, one who actually cares about helping your clients succeed. Determining where your clients’ needs are and how you can help support them boils down to sound strategic business decisions.
Data tracking is an essential step in running a successful business, use this knowledge to reevaluate your claims data and try to determine trends; either in claim frequency or claim severity.
What types of claims are most frequent? What states experience the most claims? What type of information could you provide clients to lower the potential risk of a claim? Could your clients benefit from an article about preventable slips and falls? How about an email about an incoming storm with recommendations to lock up farm equipment? Or just general information about current cybersecurity risks? Being able to identify those key touchpoints and making informed correlations are key.
And imagine if the information you provided helped your clients avoid a claim? You would be a hero and your clients would increase their trust in your organization. Implementing a client engagement strategy requires the right data to inform your clients at the right time.
Find a great starting point to effectively engage with your clients. They will greatly appreciate the extra effort you’re putting in to help them avoid dealing with a claim, freeing up more time for them to run their business.
By being proactive and giving your clients the right knowledge, you can help prevent some very costly claims and save all your clients, and your organization, time and resources.